The Baltic Exchange’s main dry bulk sea freight index rose to its highest level in 13 years on Monday, bolstered by robust demand across all vessel segments, especially capesizes.

The overall index, which factors in rates for capesize, panamax, supramax and handysize vessels, rose 73 points, or 1.6%, to 4,717, its highest since September 2008.

Shipping analysts have attributed the recent rally in the dry bulk market to global shipping constraints, port congestion in China due to COVID-19 and an overall rebound in commodities demand.

The capesize index increased by 207 points, or 3%, to 7,600, hitting its highest in nearly 12 years.

Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, rose $1721 to $63,030.

“Dry bulk rates should remain firm as demand growth is expected across all dry bulk commodities, with capesize rates likely to outperform during second half of 2021,” brokerage Jefferies said in a note.

Chinese iron ore futures gained on Monday, rising more than 5% above a key 700-yuan ($108.26) level, while steel rebar and hot-rolled coils increased amid production controls due to power cuts

The panamax index rose 8 points to 4,020, its highest in 11 weeks.

Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, increased $76 to $36,180.

The supramax index rose 4 points to 3,363, its highest in over three weeks. ($1 = 6.4662 Chinese yuan renminbi)

Source: Reuters